Martin Lewis: Drafting a Will Doesn’t Need to Cost a Fortune | This Morning

Finance/Wealth-Related Summary (Wills & Asset Transfer Context)

Macro / Legal “Market” Context (Wealth Transfer Risk)

• Nearly half of adults in the UK have not written a will (and power of attorney is mentioned as a related—but different—topic).
• If someone dies without a will (“intestate”), intestacy succession laws determine where assets go.
  • These rules vary across UK nations, creating:
    • Misallocation risk
    • Potential inheritance tax inefficiency

Key Figures & Tax/Reallocation Implications

England & Wales / Northern Ireland

• England & Wales
  • £322,000 goes first to the spouse (including a legally married person or legal civil partner).
  • Cohabitation is generally not recognized for intestacy purposes.
  • Above £322,000: assets are divided half to spouse, half to children.
• Northern Ireland
  • Similar structure, but the threshold is £250,000.

Inheritance Tax Caution

• Leaving money to a spouse may mean no inheritance tax (as noted in the discussion).
• Leaving money to children may be subject to inheritance tax (based on the referenced general rules).
  • Dying intestate could therefore result in higher inheritance tax than necessary.

Scotland

• Scotland is described as more complicated.
• The guidance given is to check the calculator on gov.uk.

Cohabitation & Relationship-Based Risk

• The key emphasis: long-term cohabitation doesn’t count for will/intestacy purposes in most of the UK.
• Scotland is described as having slight impact, but the practical guidance is to still get a will.

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Step-by-Step Framework Mentioned (What to Do)

1. Identify your jurisdiction

   • England & Wales, Scotland, or Northern Ireland
   • Use the gov.uk intestate succession calculator to see what would happen if you died without a will.

2. Check whether you need a will and update triggers

   • Highlighted categories:
     • Not married but cohabiting: needs protection; may also consider a cohabitation agreement
     • Married / divorced / had children:
       • Example guidance: create a new will when married
       • Divorce may require updates because it could otherwise leave assets to unintended beneficiaries
       • Include children if they aren’t already covered
   • Timing review: if a will is 15–20 years old, review whether it still matches your wishes.

3. Pension-specific compliance (pensions can’t be left in a will)

   • You cannot leave a pension in your will.
   • Instead, complete/update a pension nomination form, statement of intent, or expression of wishes.
   • Warning example: pension nominations sometimes go to an ex-partner because they were completed years earlier.
   • Trustees are not obligated to follow nominations, but they are usually “a very good idea.”

4. Use low-cost charity will schemes

   • These can be cheaper than typical legal fees.
   • Many seasonal schemes can draft the will cheaply (or free in some cases), often with encouraged charity legacies.

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Low-Cost / Free Will Scheme Recommendations (Timelines & Conditions)

1. Will Aid (Largest UK Scheme)

• Eligibility: Age 18+
• Booking: starts in November; it “sells out quickly”
• Costs (speaker-provided):
  • Simple will: £120
  • Mirror will: £200
• Charity beneficiaries mentioned:
  • Age UK
  • Red Cross
  • NSPCC
• Funding concept: a requested donation to charity
  • If you can’t afford it, you don’t need to pay the full amount (speaker suggests you may pay nothing if necessary)

2. Free Wills Month

• Eligibility: Age 55+
• Timing:
  • October (reservations begin Oct 1)
  • Also March (two annual events)
• Locations mentioned for October: Birmingham, Cardiff, Edinburgh, Liverpool, Manchester, Northern Ireland, and others (depending on local availability)
• Typical legacy guidance (speaker):
  • About £300 left in your will, or a small percentage of assets
• Conditional caution: free unless the case is complex (then you may be charged)

3. Octopus Legacy “Free Wills Scheme”

• Eligibility: Age 18+
• Description:
  • Drafted by someone working with lawyers, with a lawyer check/verification
  • Not “gold standard” / “silver standard” (as characterized by the speaker)
• Timing: runs until the end of November
• Note: may charge for complex cases (speaker)

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Instruments / Tickers Mentioned

• None: no ETFs, stocks, bonds, commodities, or crypto mentioned.

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Disclosures / Financial Advice Disclaimer

• The provided subtitles do not include an explicit “not financial advice” disclaimer.
• The content relates to personal finance/legal estate planning rather than investing.

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Presenters / Sources Mentioned

• Martin Lewis (primary speaker)
• gov.uk (source for intestacy rules and calculators)
• Charity recipients mentioned in the context of schemes:
  • Age UK
  • Red Cross
  • NSPCC